Tata Motors Silent On Nano’s Future As It Overhauls Car Division
Tata Motors to streamline operations, stick to only two car platforms.
Tata Motors Ltd. has set itself an ambitious target of making it to the top three global commercial vehicle players and top three passenger vehicle makers in India by 2019, the company’s management said at a conference in Mumbai. The vehicle maker will stick to only two of six platforms in its car division, which means that the company may stop producing the Tata Nano. The management was silent, when asked about the future of the car though.
I will not answer the question on Nano’s future. We have the passenger vehicle strategy, we have a clear idea of which are the market segments we would like to be in because we consider these segments as the ones which offer us the opportunity of getting profitable growth and gaining market share in the Indian market. We will take a decision and announce it as we get to it.Guenter Butschek, Managing Director & Chief Executive Officer, Tata Motors
The rejig is part of the transformation strategy undertaken by the company from June 2016, said Butschek, adding that the company will be working towards six strategic themes.
The aim is to improve the top line, better cost management and reduction which will help improve profitability and gain market share, said the management. Automation will also help make the company leaner, with the aim to make each unit profitable on its own. Existing cars will not be phased out through till both the platforms are ready and garnered some market share.
This does not mean the company will reduce its models.Mayank Pareek, President-Passenger Vehicles Unit, Tata Motors
The company will also partner with startups to collaborate on innovation and rapid changes in the mobility space, which includes a shared economy and driverless solutions.